IDB loan for $100 million will increase the use of services in education, health and nutrition to households in extreme poverty
Honduras will improve its efficiency and coverage of the program to support the social safety net known as the Bono 10,000, with a $100 million loan approved by the Inter-American Development Bank (IDB).
The Bono 10,000 Program, established in 2010, has benefited more than 350,000 poor households. Improving the program’s efficiency and targeting should enable it to reach 50 percent of the country’s poorest rural families.
The project aims to increase the use of services in education, health and nutrition of pregnant women and children under 18 years of age through targeted conditional cash transfers. Also the program is expected to increase the supply of the third cycle of basic education (7th to 9th grade) in selected rural areas and improve the efficiency of program management.
The project seeks comprehensive and sustained interventions that consider gender and cultural factors that constitute barriers to access opportunities and resources in order to help break the cycle of poverty. According to the Household Survey Multipurpose (MPHS) May 2012, two out of three households live in poverty and nearly half in extreme poverty.
The executing agency will be the Family Allowance Program (PRAF), a decentralized agency of the Ministry of the Presidency.
The IDB financing consists of $70 million from the ordinary capital, with a 30-year term, a grace period of 5.5 years and an interest rate based on LIBOR, and $30 million from the Fund for Special Operations, with a 40-year term and grace period and 0.25 percent interest. Local counterpart funds total $10 million.